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Till date, the Centre has received written commitments only from two States and two Union Territories, indicating their support for allowing foreign direct investment (FDI) in multi-brand retail.
The Centre also disclosed that it had not prepared any roadmap for allowing 100 per cent FDI in multi-brand retail sector.
On June 19, the Department of Industrial Policy and Promotion (the nodal body for FDI policy) had written to all the States and Union Territories seeking their response to the proposal.
Giving this information to the Rajya Sabha on Wednesday, Minister of State for Commerce and Industry Jyotiraditya M. Scindia said, “Till date, written communications indicating support for FDI in multi-brand retail trade have been received from the Governments of Delhi, Manipur, and from the Union Territories of Daman and Diu as well as Dadra and Nagar Haveli.”
The Centre has been trying to evolve a consensus on the issue by holding consultations with all stakeholders, including the States. This is because though the Centre can create an enabling environment to open up multi-brand retail trade, finally it is up to the State Governments to take a call on granting trade licences to companies for opening stores.
Apart from UPA-ally Trinamool Congress and Congress-ruled Kerala, Opposition parties, including the BJP and Left, have voiced their opposition to FDI in multi-brand retail.
The Minister said, “Views, both for and against, have been received from various stakeholders, including members of some political parties.”
He was replying to a query on whether certain political parties had cautioned the Government that the livelihood of small shopkeepers of the unorganised sector would be affected by the move.
Though 100 per cent FDI is permitted, with prior Government approval, for single-brand retail trade with riders such as 30 per cent sourcing from Indian small industries, FDI is not permitted in multi-brand retail.
The Minister said the IKEA Group and Pavers England Ltd had submitted their proposals for single-brand retail trading with 100 per cent FDI, adding, that no decision had been taken on these proposals yet.
To another question, he said data relating to single-brand retail trade operations in the States was not Centrally maintained.
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